Cloncurry Gold Project Acquisition To Close In November
Released
Released
Announcement PDF
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Auking Mining Limited
Suite 34, Level 10
320 Adelaide Street
Brisbane Queensland 4000
ASX:AKN
ABN 29 070 859 522
Phone 07 3535 1208
www.aukingmining.com
21 October 2025
ASX RELEASE
Cloncurry Gold Project Acquisition To Close In Early November
AuKing Mining Limited (ASX: AKN, AuKing) is pleased to confirm that the transformative
acquisition of the Cloncurry Gold Project in north-west Queensland is scheduled to take
place in early November. Orion Resources Pty Ltd (Orion) has entered into a binding
term sheet for short-term funding which will enable completion of the acquisition to
occur, prior to the final AuKing 100% acquisition of Orion being finalised shortly
afterwards.
HIGHLIGHTS
• Transformative Acquisition: Agreement has been reached whereby AuKing will now
acquire all of the issued shares in Orion, securing a 100% shareholding interest. It is
proposed that AuKing will, subject to shareholder and other statutory approvals, issue
new shares to the existing Orion shareholders for a total value of $16.28M.
• Short-term finance secured by Orion: The acquisition agreement signed by Orion
to acquire the Cloncurry Gold Project is due to complete on 3 November 2025. Orion
has entered a term sheet with an independent financier to provide short-term funding
sufficient to enable it to meet its purchase obligations by that time, subject to
completion of loan and security documents. The short-term Orion funding will be
subsequently repaid from the proposed Nebari debt facility and proceeds from an
entitlement offer to existing AuKing shareholders, details of which will be announced
shortly.
• Processing Hub Optionality: The permitted 280,000tpa Lorena processing plant
provides a rare, strategically located processing solution in the Cloncurry district,
enabling AuKing to treat its own ore and also toll-treat third party mill feed, creating
additional potential revenue streams and regional leverage through a “hub and
spoke” business model – a proven approach employed in many locations around the
world.
• District-Scale Exploration Potential: The Cloncurry Gold Project spans ~447km² of
granted mining and exploration tenure centered on Mt Freda and Golden Mile, with
multiple drill-ready gold and copper-gold targets. Historical drilling has defined JORC-
compliant minerals resources, while additional prospects including Mt Scheelite, Little
Duke and others provide significant discovery upside and evidence of IOCG-style
mineralisation across the district. (Refer to ASX release by Ausmex Mining Group
(ASX Code AMG) on 25 February 2019).
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• Acquisition subject to ASX approval: AuKing has approached ASX to confirm that
full ASX admission re-compliance will not be required under Chapter 11 of the ASX
Listing Rules, and the proposed 100% Orion acquisition is conditional upon ASX
providing this confirmation. Approval from AuKing shareholders will (in any event) be
sought before the issue of further shares to the existing Orion shareholders is
completed.
AuKing’s Managing Director, Mr Paul Williams, said that Orion securing the short-term
completion funding represents an important final step in completing the Cloncurry Gold
Project acquisition and in unlocking the full value of this asset portfolio in a strong gold market.
“With Orion completing the Cloncurry acquisition in early November, AuKing will then focus
on finalising the entitlement offer to existing shareholders and the 100% Orion merger over
the next few weeks. In addition, we can focus entirely on project study and development
activities. The Board views this acquisition as a substantial opportunity to transition AuKing
into a gold developer and near-term producer while generating significant value for
shareholders,” he said.
About the Cloncurry Gold Project
The Cloncurry Gold Project represents one of the most substantial consolidated gold
packages in the Cloncurry district, a region with a long history of high-grade production dating
back to the early 20th century. Covering ~447km² across mining leases and exploration
permits, the Project combines proven mines, modern infrastructure and district-scale
exploration potential. In addition to underpinning AuKing’s restart pathway, the Lorena
processing plant offers the capacity to act as a regional processing hub for stranded deposits
in the Cloncurry district, delivering strategic optionality beyond the Company’s current
landholding.
Figure 1 – Location of Cloncurry Gold Project assets (Wynberg and Wallace are excluded)
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Lorena CIL Processing Plant – a modern hub
At the centre of the Cloncurry package is the permitted 280,000tpa Lorena CIL and flotation
plant, commissioned in 2018 at a capital cost of more than A$50 million. Independently valued
(on a replacement value basis) at over A$30 million recently, the plant was designed for long-
term regional use, featuring SAG and ball mills, flotation circuit for sulphidic ores and a four-
stage CIL system. It sits only 15km east of Cloncurry on sealed roads with and established
water supply, providing the Cloncurry Gold Project with a rare, low-capital cost restart pathway
and a potential toll-treating hub for third-party feed.
Figure 2 – Overhead of Lorena plant, tailings and waste rock stockpiles and open pit
Mt Freda – a cornerstone of past and future production
Mt Freda is one of Cloncurry’s most recognised historic gold mines, producing significant
ounces in the late 1980s and early 1990s when open pit mining exposed high-grade shoots
within brecciated quartz-carbonate lodes. Subsequent operators including Ausmex and
Tombola defined JORC-compliant resources and drilled extensions demonstrating that the
system remains open along strike and at depth. Flanked by the Shamrock and Comstock pits
on granted mining leases, Mt Freda forms the backbone of AuKing’s near-term restart
potential, with haulage roads and infrastructure already in place.
Figure 3 – Overhead of Mt Freda Complex, including open pit and proposed VAT processing
Golden Mile Complex – high grades on granted mining leases
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Only 600 metres north of Mt Freda, the Golden Mile complex hosts a series of parallel shear-
hosted lodes historically worked by underground and open pit methods. Modern drilling in
2022 returned high-grade intercepts confirming the continuation of mineralisation at depth
and along strike. With Shamrock and Comstock pits already established, Golden Mile
represents a low-cost, high-impact satellite to the Lorena processing plant, offering immediate
resource definition and development upside.
Figure 4 – Overhead of Golden Mile Complex, Comstock pit to the left and Shamrock pit to
the right
Mt Scheelite – pathway to growth
Mt Scheelite lies immediately west of the Comstock and Shamrock open pits. Drilling in 2022
confirmed shallow gold mineralisation hosted in quartz–siderite veins within chlorite–
magnetite altered Proterozoic sediments. Mineralisation is structurally controlled, consistent
with the gold systems seen at Mt Freda and Golden Mile. Previous programs intersected gold
at near-surface depths, indicating strong potential for additional mineralised shoots. The
system remains open along strike and at depth, with multiple extensions yet to be tested.
Regional Exploration Pipeline – a true district play
Beyond the known deposits, the consolidated landholding contains numerous walk-up drill
targets and historic workings, many never systematically tested with modern exploration.
Prospects such as Little Duke, Evening Star, Musk and Countess have returned strong
geochemical anomalies and geophysical signatures consistent with copper-gold hydrothermal
breccias and possible IOCG systems. The Cloncurry district has long been recognised for its
polymetallic potential, and AuKing now holds a regional footprint that positions it to deliver
both near-term gold production and longer-term Tier-1 discovery potential.
Tick Hill – one of Queensland’s highest-grade past producers
The Tick Hill gold mine, 110km south-east of Mt Isa, produced ~665koz at a remarkable grade
of ~25 g/t Au in the early 1990s ranking it among Australia’s highest-grade deposits. Under
AuKing’s 50:50 joint venture with the Tick Hill mine owner, the historic tailings are being
studied for possible toll-treatment through the Lorena processing plant. Pilot test work has
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validated good metallurgical recoveries, and a 2020 Pre-Feasibility Study confirmed robust
economics for toll-treating this material.
Orion Acquisition Terms
AuKing has entered into a binding Heads of Agreement with Orion Resources making
provision for the implementation of the acquisition of 100% of the shares in Orion. This
acquisition is intended to be effected in two contemporaneous stages:
• Firstly, by AuKing accelerating its existing earn-in right to acquire 50% of Orion for
$5M in cash; and
• Secondly, with AuKing now acquiring the remaining 50% interest for a total
consideration of $16.283M. This second stage acquisition is to be completed by way
of the issue of ordinary shares in AuKing to each of the existing Orion shareholders in
proportion to their holdings as at financial close. 50% of these shares will be the
subject of voluntary trading restrictions for a period of either 12 months from issue or
the delineation of a maiden reserve at Mt Freda, whichever is the earlier.
AuKing has approached ASX to confirm that full ASX admission re-compliance will not be
required under Chapter 11 of the ASX Listing Rules, and the proposed 100% Orion
acquisition is conditional upon ASX providing this confirmation. Approval from AuKing
shareholders will (in any event) be sought before the issue of further shares to the existing
Orion shareholders is completed.
AuKing also intends to conduct a significant capital raising by way of an entitlement offer to
existing AuKing shareholders. The proposed AuKing raising is likely to be conducted by way
of a renounceable rights issue with further details as to the offer terms to be announced
shortly.
Next Steps
These include the following:
• Await response from ASX regarding Chapter 11 of the ASX Listing Rules;
• Orion takes all steps to close the existing sale contract to acquire the Cloncurry Gold
Project in early November;
• Proceed with AuKing’s proposed entitlement offer to existing shareholders;
• Execute binding facility agreement to finalise documentation with Nebari and
drawdown the A$8M facility for acquisition funding purposes (See AKN release to ASX
on 3 September 2025);
• Convene a further extraordinary general meeting of AuKing shareholders, proposed to
be held in late November 2025;
• Engage project team to commence detailed project planning. An assessment will be
completed to leverage past knowledge and experience. This will benefit cost and time
in the project plan and execution; and
• Aim of project work is to demonstrate viability in technical, financial, environmental, and
social aspects while providing a basis for detailed design and financing support to
resume operations.
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Forward Looking Statements
This announcement contains “forward-looking statements”. All statements other than those
of historical facts included in this announcement are forward-looking statements. Where the
Company expresses or implies an expectation or belief as to future events or results, such
expectation or belief is expressed in good faith and believed to have a reasonable basis.
However, forward-looking statements are subject to risks, uncertainties, and other factors,
which could cause actual results to differ materially from future results expressed, projected
or implied by such forward-looking statements.
This announcement has been authorised by Paul Williams, Managing Director, AuKing
Mining Limited.
For more information, please contact:
Paul Williams
Managing Director
Mobile +61 419 762 487
p.williams@aukingmining.com
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